[Federal Register Volume 63, Number 60 (Monday, March 30, 1998)]
[Notices]
[Pages 15177-15178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8231]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; New World Transtechnology; 
Order Denying Permission to Apply for or Use Export Licenses

    On December 20, 1996, New World Transtechology was convicted in the 
United States District Court for the Southern District of Texas of 
violating the International Emergency Economic Powers Act (50 U.S.C.A. 
1701-1706 (1991 & Supp. 1997)) (IEEPA). New World Transtechnology was 
convicted on one count of knowingly and willfully attempting and 
causing to be exported, to the People's Republic of China, three Sun 
Microsystems SPARCstation computers without the required validated 
export license or other authorization from the U.S. Department of 
Commerce, and one count of knowingly and willfully attempting to export 
and attempting to cause to be exported from the United States to the 
Commonwealth of Hong Kong, for transshipment to the People's Republic 
of China, a MIPS Magnum 4000 PC-50 Advanced RISC computer without the 
required validated export license or other authorization from the U.S. 
Department of Commerce.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(50 U.S.C.A. app. Sections 2401-2420 (1991 & Supp. 1997)) (the Act),\1\ 
provides that, at the discretion of the Secretary of Commerce,\2\ no 
person convicted of violating IEEPA, or certain other provisions of the 
United States Code, shall be eligible to apply for or use any license, 
including any License Exception, issued pursuant to, or provided by, 
the Act or the Export Administration Regulations (currently codified at 
15 CFR Parts 730-774 (1997)) (the Regulations), for a period of up to 
10 years from the date of the conviction. In addition, any license 
issued pursuant to the Act in which such a person had any interest at 
the time of conviction may be revoked.
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of 
August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3 
CFR, 1996 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629, 
August 15, 1997), continued the Export Administration Regulations in 
effect under IEEPA.
    \2\ Pursuant to appropriate delegations of authority, the 
Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, exercises the authority 
granted to the Secretary by Section 11(h) of the Act.
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    Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon 
notification that a person has been convicted of violating IEEPA, the 
Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, shall determine whether to deny 
that person permission to apply for or use any license, including any 
License Exception, issued pursuant to, or provided by, the Act and the 
Regulations, and shall also determine whether to revoke any license 
previously issued to such a person.
    Having received notice of New World Transtechnology's conviction 
for violating IEEPA and following consultations with the Acting 
Director, Office of Export Enforcement, I have decided to deny New 
World Transtechnology permission to apply for or use any license, 
including any License Exception, issued pursuant to, or provided by, 
the Act and the Regulations, for a period of 10 years from the date of 
its conviction. The 10-year period ends on December 20, 2006. I have 
also decided to revoke all licenses issued pursuant to the Act in which 
New World Transtechnology had an interest at the time of its 
conviction.
    Accordingly, it is hereby ordered
    I. Until December 20, 2006, New World Transtechnology, 417 Church 
Street, Apartment 25, Galveston, Texas 77550, may not, directly or 
indirectly, participate in any way, in any transaction involving any 
commodity, software or technology (hereinafter collectively referred to 
as ``item'')

[[Page 15178]]

exported or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations, 
including but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document:
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the Regulations, or in any other 
activity subject to the Regulations; or
    C. Benefiting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations.
    II. No person may directly or indirectly, do any of the following:
    A. Export or reexport to or on behalf of the denied person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the denied person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the denied person acquires 
or attempts to acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the denied person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the denied person in the United States any item 
subject to the Regulations with knowledge or reason to know that the 
item will be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the 
Regulations that has been or will be exported from the United States 
and that is owned, possessed or controlled by the denied person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the denied person if such service involves the use of any 
item subject to the Regulations that has been or will be exported from 
the United States. For purposes of this paragraph, servicing means 
installation, maintenance, repair, modification or testing.
    III. After notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to New World Transtechnology by 
affiliation, ownership, control, or position of responsibility in the 
conduct of trade or related services may also be subject to the 
provisions of this Order.
    IV. This Order does not prohibit any export, reexport, or other 
transaction subject to the Regulations where the only items involved 
that are subject to the Regulations are the foreign-producted direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until December 20, 2006.
    VI. A copy of this Order shall be delivered to New World 
Transtechnology. This Order shall be published in the Federal Register.

    Dated: March 19, 1998.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 98-8231 Filed 3-27-98; 8:45 am]
BILLING CODE 3510-DT-M